BILL NUMBER: SB 579	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Dunn

                        FEBRUARY 23, 1999

   An act to amend Section 22330 of the Financial Code, relating to
finance lenders.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 579, as introduced, Dunn.  Finance lenders.
   The California Finance Lenders Law provides for licensing and
regulation by the Commissioner of Corporations of persons engaged in
the business of making consumer or commercial loans.  Under these
provisions, a licensee generally may not take a deed of trust,
mortgage, or lien upon real property as security for a loan if the
principal amount of the loan is less than $5,000.
   This bill would provide that a licensee may not take a deed of
trust, mortgage, or lien upon real property as security for a loan if
the bona fide principal amount of the loan is less than $5,000.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  no.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 22330 of the Financial Code is amended to read:

   22330.  No licensee shall take a deed of trust, mortgage, or lien
upon real property as security for any loan of a  bona fide 
principal amount of less than five thousand dollars ($5,000) made
under this division, except any lien as is created by law upon the
recording of an abstract of judgment.